One local banking company revived by a cash infusion 18 months ago is transforming itself into a privately held corporation to eliminate the costs associated with maintaining a public company.
John Wertin, who owns 91% of San Clemente Bancorp, plans to pick up the rest of the shares in an offering that would give remaining shareholders $1.25 a share.
Wertin picked up 81% of the company for $1 a share, or $1.5 million, in late 1987, just as the company was stemming its losses at its Bank of San Clemente subsidiary. He picked up an additional 10% by assuming about $700,000 in debt to previous directors, who had tried to bail the firm out with personal loans to the company. Wertin converted the debt to equity by taking the additional stock.
The company continued to struggle in the first half of 1988 but ended the year with net income of $156,000. In the first quarter this year, the company posted net income of $153,000 and had assets of $42.4 million at the end of March, according to Michael Dunahee, the company’s president.
Wertin, the company’s chairman, also is president of Pacific Co.